Rob, grandpa of Ryan, Trevor, Devon & Hannah wrote:

> ...  She took 
> her concerns to her supervisor, who was working under the assistant director 
> of 
> the department. The assistant director, who is no longer with the SEC, later 
> married the perpetratorTMs niece. The investigatorTMs claims turned out to be 
> consistent with the case the Justice Department eventually brought against 
> the 
> perpetrator. When the investigator brought her concerns to her supervisor, 
> however, he directed her to concentrate on an investigation of mutual funds.  

I thought the power of accounting systems was that they were immune to 
a single inside bad actor due to the distribution of checks and 
balances, meaning that a single bad actor cannot possibly cover all the 
ways "irregular" activities would be uncovered.

Apparently such considerations don't enter into the design and 
operation of SEC auditing and/or the management and reporting 
structures thereof...

You'd like to think that institutions such as the SEC were built in 
such a way that "evidence-backed reasonable suspicion" was heavily 
rewarded, rather than being able to be swept under the carpet by a 
single more senior staff member.  Maybe a revamped SEC, not labouring 
under what must now (even in the US among thinking folk) be the totally 
bankrupt notion that "small government" is necessarily better, has a 
chance of getting these kinds of things right (or, at least, a lot 
better)???



Regards,

Nick FitzGerald



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